"That’s something smaller challenger banks are going to have to work hard at to overcome."
But Mr Church thought clients of such banks were not at a risk as the issue was primarily for the lenders themselves rather than the consumer.
He added: "The worst thing to happen would be the unintended consequence that your mortgage gets sold on, but I don’t think borrowers are at any further risk because they owe the bank money, not the other way round.
"It’s more of an issue for savings. If you’re looking at smaller banks for savings, I would tread more carefully."
Mr Church added that all banks — big or small — were likely to suffer if it got to the point of a financial crisis.
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